Government to sell 3 dated securities for Rs10,000 crore

The Government of India has announced the sale (re-issue) of the `7.02 per cent 2016' stock for a notified amount of Rs3,000 crore, the `6.90 per cent 2019' stock for a notified amount of Rs4,000 crore and the `8.28 per cent 2032' stock for a notified amount of Rs3,000 crore through price based auctions.

The auctions will be conducted by the Reserve Bank of India, Mumbai, on 4 December 2009 using uniform price method, a government release said.

Up to 5 per cent of the notified amount of the sale of stocks will be allotted to eligible individuals and institutions as per the scheme for non-competitive bidding facility in the auction of government securities.

Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Negotiated Dealing System (NDS) on 4 December 2009. The non-competitive bids should be submitted between 10.30 am and 11.30 am and the competitive bids should be submitted between 10.30 am and 12.30 pm, the release said

The result of the auctions will be announced on the same day and payment by successful bidders will be on 7 December 2009.

The stocks will qualify for ready forward facility. The stocks will be eligible for `When Issued' trading for a period commencing 30 November to 4 December  2009 in accordance with the guidelines on 'When Issued transactions in Central Government Securities' issued by the RBI.